| Literature DB >> 28560328 |
Michaël Aklin1, Patrick Bayer2, S P Harish3,4, Johannes Urpelainen5.
Abstract
This article assesses the socioeconomic effects of solar microgrids. The lack of access to electricity is a major obstacle to the socioeconomic development of more than a billion people. Off-grid solar technologies hold potential as an affordable and clean solution to satisfy basic electricity needs. We conducted a randomized field experiment in India to estimate the causal effect of off-grid solar power on electricity access and broader socioeconomic development of 1281 rural households. Within a year, electrification rates in the treatment group increased by 29 to 36 percentage points. Daily hours of access to electricity increased only by 0.99 to 1.42 hours, and the confidence intervals are wide. Kerosene expenditure on the black market decreased by 47 to 49 rupees per month. Despite these strong electrification and expenditure effects, we found no systematic evidence for changes in savings, spending, business creation, time spent working or studying, or other broader indicators of socioeconomic development.Entities:
Keywords: India; randomized field experiment; rural electrification; solar microgrid
Year: 2017 PMID: 28560328 PMCID: PMC5435414 DOI: 10.1126/sciadv.1602153
Source DB: PubMed Journal: Sci Adv ISSN: 2375-2548 Impact factor: 14.136
Effect of MGP solar microgrids on household electrification and hours of electricity.
Results are shown for household electrification (A) and hours of electricity per day (B). The SEs are clustered by habitation and are given in parentheses. The dependent variable in (A) is a dichotomous variable that takes a value of 1 if the household reports having electricity and 0 otherwise. The dependent variable in (B) is the number of hours of electricity available per day. n = 3825; number of households, 1281. *P < 0.10, **P < 0.05, ***P < 0.01. FE, fixed effects.
| (A) Access to electricity | ||||
| Treatment | 0.10**(0.04) | 0.08* (0.04) | 0.36** (0.14) | 0.29** (0.14) |
| Household FE | Yes | Yes | ||
| Wave FE | Yes | Yes | Yes | Yes |
| Pretreatment mean for control group = 0.01 | ||||
| First-stage estimate | 0.29 | 0.29 | ||
| First-stage | 10.15 | 10.01 | ||
| (B) Hours of electricity | ||||
| Treatment | 0.42 (0.26) | 0.29 (0.27) | 1.42 (0.91) | 0.99 (0.92) |
| Household FE | Yes | Yes | ||
| Wave FE | Yes | Yes | Yes | Yes |
| Pretreatment mean for control group = 0.12 | ||||
| First-stage estimate | 0.29 | 0.29 | ||
| First-stage | 10.13 | 10 | ||
Effect of MGP solar microgrids on household kerosene spending.
Effects are shown for spending in the private market (A), the PDS (B), and overall (C). The SEs are clustered by habitation and are shown in parentheses. All dependent variables are measured in rupees per month. n = 3825; number of households, 1281. *P < 0.10, **P < 0.05, ***P < 0.01.
| (A) Kerosene spending on private market | ||||
| Treatment | −14.01*** (5.28) | −14.49** (6.91) | −47.49** (19.83) | −49.36** (24.62) |
| Household FE | Yes | Yes | ||
| Wave FE | Yes | Yes | Yes | Yes |
| Pretreatment mean for control group = 72 | ||||
| First-stage estimate | 0.29 | 0.29 | ||
| First-stage | 10.15 | 10.01 | ||
| (B) Kerosene spending on PDS | ||||
| Treatment | 3.37 (2.71) | 1.23 (2.62) | 11.41 (9.81) | 4.18 (8.79) |
| Household FE | Yes | Yes | ||
| Wave FE | Yes | Yes | Yes | Yes |
| Pretreatment mean for control group = 35 | ||||
| First-stage | 0.29 | 0.29 | ||
| First-stage | 10.15 | 10.01 | ||
| (C) Total kerosene spending | ||||
| Treatment | −10.64** | −13.26** | −36.08** | −45.18** |
| Household FE | Yes | Yes | ||
| Wave FE | Yes | Yes | Yes | Yes |
| Pretreatment mean for control group = 107 | ||||
| First-stage | 0.29 | 0.29 | ||
| First-stage | 10.15 | 10.01 | ||
Socioeconomic effects of MGP solar microgrids.
The SEs are clustered by habitation and are shown in parentheses. “Savings” indicate household savings, measured in rupees per month. “Expenses” are household expenditures, measured in rupees per month. “Business” is a dichotomous indicator that takes a value of 1 if the household head owns a business. “Work time” is the time women spent working per day in hours. “Study” is a dichotomous variable that takes a value of 1 if the respondent or the children use lighting to study. “Phone charging” is the amount spent on phone charging, measured in rupees per week.
| Treatment | 65.82 | 224.17 | 192.81 | 656.69 | −0.01 | −0.03 | −0.05 | −0.18 | −0.01 | −0.02 | 0.66 | 2.55 |
| Household FE | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Wave FE | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Pretreatment mean | 912 | 4455 | 0.06 | 4.07 | 0.61 | 8.84 | ||||||
| First-stage estimate | 0.29 | 0.29 | 0.29 | 0.3 | 0.29 | 0.26 | ||||||
| First-stage | 10.01 | 10.01 | 10.01 | 10.65 | 10.01 | 7.66 | ||||||
| Observations | 3825 | 3825 | 3825 | 3825 | 3825 | 3825 | 3529 | 3529 | 3825 | 3825 | 2532 | 2532 |
| Number of | 1281 | 1281 | 1281 | 1281 | 1281 | 1281 | 1263 | 1263 | 1281 | 1281 | 1103 | 1103 |